European bond yields decline as inflation expectations hit three week lows

European bond yields dropped today as fall in oil prices pushed inflation expectations to a three-week low.

UK Gilt yields dropped as prices opened higher on weak equities, low oil prices. Off late, weekends have produced political developments resulting in heightened Brexit fears. Hence, caution ahead of an extended weekend is keeping yields lower as well.

Meanwhile, German bond yield hit a two-week low of 0.178%; down 2 basis points on the day. Italian and Spanish benchmark yields also dropped roughly two basis points each.